by Bradr » Tue Jul 29, 2008 09:37 pm
Hi Folks, I'm entertaining buying into an existing book of business and starting out as an allstate independent agent . I have over 20 years of sales and marketing experience but no insurance related experience at all. So I'd be starting from scratch licensing and all.
Can anyone give me their opinion of this opportunity, company what I should watch out for?
Thanks in advance. :D
Can anyone give me their opinion of this opportunity, company what I should watch out for?
Thanks in advance. :D
Posted: Fri May 06, 2011 05:04 pm Post Subject: Allstate Insurance Agency Purchase - existing book
Can anyone provide advice as to the negotiations regarding an existing book of business. What extent do you need legal counsel and are there any purchase agreement templates someone can provide?
Posted: Fri May 06, 2011 07:31 pm Post Subject:
What extent do you need legal counsel
To the extent that you don't want to get stuck holding the bag for some other agent's misdeeds. You need an indemnity clause to protect you against unknown claims that could be lodged against the agency by clients or regulators. Is the agent retiring or moving across town? You may want to include a two-year non-compete/non-solicitation clause to prevent stealing the book of business away to another agency.
Templates? Hardly.
The value of a business like this is probably 3-6 times cash flow on renewals. The value of new business depends on you. So if the renewal book of business is $50,000 annually, the pricetag for the agency could range from $150,000 to $300,000. Or more.
Caveat emptor!
Posted: Sat May 07, 2011 04:47 am Post Subject:
Johnny Leigh is a retired agent, now consultant/broker that has handled several allstate and independant acquisitions for agents and is highly respected in the Allstate agent community. I would definitly contact him. johnnyleigh@ymail.com
ppcloans.com, capitalresources.com, and allstatebank.com are the top three loan companies providing loans for agency funding. also they can give you information on what agency's are selling for. Much depends on market location, retention, loss ratio, size and age of the agency, and much more. Typically about 2.5 times is the average multiple right now. The investment is typically well into six figures so know as much as you can going in about. Email Johnny only if you are seriously looking into buying a book of business, he's an incredible resource.
Posted: Sun May 08, 2011 04:34 pm Post Subject: Hey Allstaterr
If you get this message, please update us on your current status, after purchasing the book in 2010... Hows it going?
Posted: Tue May 17, 2011 03:39 am Post Subject: KtOTYXNjaQEbSY
Allstate independent 1.. Super :)
Posted: Fri Jun 03, 2011 09:59 am Post Subject: fWkdAIwJOI
Allstate independent 1.. Corking :)
Posted: Fri Jun 17, 2011 04:41 pm Post Subject: PPC/Capital Resource
They will cost you sooo much in upfront fees. be careful.
Posted: Mon May 07, 2012 11:16 pm Post Subject: Seriously...
Why dont you post something relevant like answering the question being presented. Who doesn't know that license, business management, and industry knowledge isn't required. How about describing the appointment process or something of value!
Posted: Wed May 16, 2012 07:08 am Post Subject: Thanks very much
Hi
You can find this info by using search box in the top of website with some keywords related before posting questions.
Posted: Mon Jun 25, 2012 03:23 am Post Subject:
whoever you are buying the book from might wanna solicit his book inspite of non-compete. try to bind him in a 1-3 years of non compete agreement. This would be a good thing, these activities are hard to prove but thatas your best defence. Once you come on board, actively call and send mail to all the customers letting them to know you and your new team. An open house would also be a good idea. all the best.
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